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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
This pair has become bearish, especially in the short-term. Last week, price went sideways from Monday to Wednesday and then dropped sharply on Thursday and Friday. The drop was 170 pips, and it was enough to bring about a near-term bearish outlook on the market. This week, the bearishness could continue as the market is projected to drop at least, another 100 pips, which would enable the support line at 1.1500 to be reached.
USDCHF
Dominant bias: Bullish
There is a Bullish Confirmation Pattern on USDCHF, brought about by the strength in the Greenback (and the bearish run on EURUSD). The rate at which USDCHF has gone upwards is faster and more serious that the rate at which EURUSD has come downwards. Price gained 230 pips last week, ending the recent bearishness in the market and ending September 28 on a bullish note. The outlook on the market is bullish for this week.
GBPUSD
Dominant bias: Bearish
In the first 3 weeks of September, Cable made commendable effort to bring about a sustainable bullish signal in the market. Nevertheless, the downward movements that was witnessed on September 21, 27 and 28, have rendered the bullish effort useless. In fact, the bias on the market is now bearish and the accumulation territories at 1.3000, 1.2950 and 1.2900 could be tested before the end of the week.
USDJPY
Dominant bias: Bullish
This is a bull market, with a clean Bullish Confirmation Pattern. The strength of USD, plus the perceived weakness in JPY, has helped the buying pressure in the last few weeks. Since September 7, the market has gained about 320 pips, and it might gain at least, another 200 pips within the next 2 weeks. This week is going to be volatile for JPY pairs, as it is the new week of the October.
EURJPY
Dominant bias: Bullish
On September 24 and 25, this cross went sideways. From September 26 to 28, it began to pull back. The pullback was not significant enough to bring about a bearish signal in the market, unless price falls by another 200 pips. From this point, price has a higher probability of going upwards than going downwards, and as a result of this, the supply zones at 132.00, 132.50 and 133.00 might be attained before the end of this week.
GBPJPY
Dominant bias: Bullish
There is a valid bullish outlook on this trading instrument, irrespective of the fact that the market movement was flat throughout next week. It is possible that the flatness in the market could continue for a few more days, before there is a breakout in the market. When the breakout occurs eventually, it would end the current flatness in the market and most probably favor bulls. The expected bullish movement could even become significant, especially when GBP finally begins to gather strength.
This forecast is concluded with the quote below:
“…The good thing is that there is no age limit when it comes to trading and, unlike the Olympics, you don’t have to worry so much about the physical part as you can go for gold from the comfort of your chair.” – TradingEducators
Trading realities: http://www.advfnbooks.com/books/unlockpotential/index.html
Source: www.tallinex.com
